Wednesday, October 21, 2020

NIO Limited Stock Trades with Highest Volume as JPMorgan Analyst Targets NIO Price to $40

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NIO is leading the market since the kickoff today, trading with 189 million volume.

The Chinese Electric Vehicle Company, NIO Limited (NIO) is leading the market with the highest trading volume, as we write this. The company made a strong surge followed by JP Morgan’s bullish price target of $40.

Tesla, Inc. rival NIO is making its move to take a big slice of the market that Tesla is currently dominating. NIO has jumped significantly today up by 22.20% trading at $26.38, as of 11:46 A.M. EDT. Shares of NIO have added +$4.72 to its price so far and is continuing to rise as the day goes on.

The stock is trading with the highest trading volume of 189 million way ahead of any other stock in the market today.

NIO is currently trading at its highest price mark in its history. The reason why the stock has taken a sudden move today is due to JP Morgan’s analyst, Nick Lai setting a new price target of $40 by June 2021, expecting the company to be driven by strong value-to-sales metrics.

JP Morgan estimates that by 2025, NIO would capture almost 7% of the EV market. While in the premium electric vehicle segment, where Tesla is currently dominating, the company sees the Chinese EV firm to take a whopping 30% share of the market.

The fact that the increasing scope of EV industry and electric car companies coming up with bigger projects will enhance their domination in the market. That is the reason why JP Morgan sees NIO competing with Tesla in the EV market in the next five years.

Some of the few catalysts that JP Morgan sees for the near term will help NIO to grow which include:

  • The upcoming NIO earnings for the third quarter, likely in mid-November,
  • The potential margin of gross profit is expected to grow by 12%,
  • The expected debut of a new sedan at NIO Day, set for December 2020,
  • A strong backlog of orders, with the wait time for the newly launched NIO EC6 crossover currently at eight weeks.

The JP Morgan estimate and NIO’s upcoming events shows that the stock would keep up the momentum rolling, especially after the reports have surfaced about the launch of its new vehicle.

The new ET7 sedan which is expected to be launched by the end of this year or earlier next year, should be a direct competitor to the Tesla Model S. The entry of new sedan class has made Tesla to lower its price in the U.S. and China already to make a counter move against NIO’s new product before its unveiled.

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